20 in 10 Summary. Reduce U.S. Gasoline Usage By 20% In The Next Ten Years

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1 20 in 10 Summary Reduce U.S. Gasoline Usage By 20% In The Next Ten Years Increase supply of renewable and alternative fuels Set Alternative Fuels Standards at 35 billion gallons per year by 2017 Equates to 5X the current Renewable Fuels Standard for 2012 Displaces 15% of projected annual gasoline use in 2017 Increase vehicle efficiency Reform and modernize CAFÉ Avoids 5% of projected annual gasoline use in 2017

2 Biofuel Technologies: Today and Tomorrow Feedstock Pathways Conversion Processes Distribution of Biofuels Today & Near Term Corn Ethanol Biochemical Conversion Fermentation Existing Distribution Infrastructure 2012 and Beyond Cellulosic Ethanol Agricultural residues, energy crops, natural oils, wood/forestry resources Biochemical Conversion Fermentation Advanced enzymes Thermochemical Conversion Gasification Pyrolysis Expanded, Advanced Distribution Infrastructure Cellulosic ethanol will help meet future biofuels demand To Market

3 R&D Demo Market Entry Market Penetration Market Maturity Cellulosic Ethanol Mixed Alcohols; Fischer-Tropsch Butanol; DME Renewable Diesel 2 nd Generation Biofuels R&D efforts focus on: Increasing range of feedstocks Reducing conversion cost Two main technology platforms: Biochemical: conversion of the cellulose to sugars and fermentation to alcohol fuels Thermochemical: gasification of biomass to syngas and synthesis to fuels Commercial renewable diesel plants under construction Source: Navigant Rapeseed and Soy Biodiesel Corn and Sugarcane Ethanol 1 st Generation Biofuels Ethanol: clean burning, high-octane alcohol fuel as replacement or extender for gasoline Commercially produced since the 70s in U.S. and Brazil, still market leaders Corn ethanol is cost competitive (without subsidies) with gasoline when crude oil is >$50/barrel ($30/brl from sugar cane) Biodiesel: high-cetane, sulfur-free alternative to (or extender of) diesel fuel and heating oil Commercialized in Europe in the 90 s Inferior economics & market to ethanol Second generation technologies aim to resolve limitations

4 Future Production of Biofuels: Sources Perennial Crops Other (8%) Corn (6%) Crop Residues Today: Nearly all ethanol is made from corn grain The Future: Cellulosic biomass will be the primary source for fuel ethanol (28%) (31%) Benefits of Cellulosic Ethanol Forest Resources (27%) Emits up to 86% less greenhouse gases than reformulated gasoline Relies on non-food and waste resources Projected U.S. Biofuel Sources Source: Biomass as Feedstock for a Bioenergy and Bioproducts Industry: Technical Feasibility of a Billion Ton Annual Supply DOE and USDA. In the future, far more ethanol will be made from cellulosic biomass than from corn.

5 RD&D Focus Areas Feedstock Production DOE/Science USDA Feedstock R&D Biochemical R&D Thermochemical R&D Bio-Products R&D Balance of of Plant Feedstock Logistics Ethanol Production DOE Biomass Program Fundamental Research Research Development Demonstration Deployment Corn Wet Mill Improvements Corn Dry Mill Improvements Oil Seed Mill Improvements Pulp and Paper Mill Improvements Forest Products Mill Improvements Agricultural Residue Processing Perennial Energy Crops Processing Ethanol Distribution Increasing Industry Participation DOE is conducting RD&D on multiple fronts Ethanol End Use DOE Vehicle Technologies Program Integrated Biorefineries

6 Timeframe for Meeting 2012 Goal Initiative Goals President s Biofuels Initiative President s 20 in 10 Goal Make Cellulosic Ethanol Cost Competitive Targets Fund advanced fermentation Create regional feedstock development centers Commercial development of at least one advanced fermentation organism Validation of $0.82/gal cellulosic ethanol processing cost Integrated Biorefineries Results Fund six integrated biorefinery projects Fund 10% Scale Validation Solicitation Achieve commercial operation of cellulosic biorefineries Achieve operation of 10% scale facilities to validate costs Issue loan guarantee program for projects converting cellulosic biomass to energy Conduct reverse auction to stimulate market Development of commercial facilities resulting from loan guarantee program.

7 Research, Development and Demonstration Collaborative R&D Feedstocks: integration of feedstocks with conversion processes Conversion Technologies: biochemical and thermochemical Integrated Biorefineries: systems integration, demonstrations, infrastructure development Integrated Biorefineries Systems Integration: feedstocks, conversion, biopower, infrastructure Demonstration: pilot scale, commercial scale DOE efforts are paving the way for a strong, domestic bioenergy industry with commercial success possible by 2012.

8 Policies Accelerating Biofuel Production Energy Policy Act 2005 (EPAct 2005) Section 932: Commercial Integrated Biorefineries Six awards made in March 2007 Up to $385 million in DOE funds over next 5 years Section 941: Revisions to Biomass R&D Act of 2000 Interagency workshop Fall 2006; strategy document expected Fall 2007 Section 942: Cellulosic Ethanol Reverse Auction Request for Information completed $5 million requested for FY 2008 Sections 1510, 1511, and Title XVII: Loan Guarantees On October 4, 2007, DOE announced the final regulations for the loan guarantee program and invited 16 project sponsors to submit full applications for loan guarantees. Six of these are projects in biomass. EPAct 2005 goals are integrated into core technology priorities.

9 Working with DOE s Office of Science on Complementary Basic Research Office of Science investing $375 million to fund three new Bioenergy Research Centers to accelerate basic research on the development of cellulosic ethanol and other biofuels. Science and EERE recently issued a joint biofuels research agenda: Breaking the Biological Barriers to Cellulosic Ethanol. Part of the National Biofuels Action Plan effort In 2007, Office of Science joined USDA in offering $8.3 million for research in biomass genomics to accelerate the production of alternative fuels

10 Biomass R&D Initiative (BRDI) Multi-agency effort to coordinate and accelerate all Federal biobased products and bioenergy research and development Mandated under the Biomass Research & Development Act of 2000, further revised by Energy Policy Act of 2005 (Sec 937) BRDI coordinating bodies Biomass R&D Board, a cabinet-level council co-chaired by DOE and USDA (also includes DOI, DOT, EPA, DOC) Biomass R&D Technical Advisory Committee 30 senior individuals from industry, academia, state government Aims to deliver National Biofuels Action (NBA) Plan by Fall Making up to $18 million available for R&D in biomass-based fuels, energy, products, and processing

11 Biomass R&D Board Members Co-Chairs Thomas C. Dorr, Under Secretary for Rural Development, USDA Alexander A. Karsner, Assistant Secretary, Energy Efficiency and Renewable Energy, DOE Members C. Stephen Allred, Assistant Secretary, Land and Minerals Management, DOI Vice Admiral Thomas J. Barrett, Acting Deputy Secretary, DOT Dr. Arden Bement, Director, NSF Dr. Gale Buchanan, Under Secretary for Research, Education and Economics, USDA Dr. George Gray, Assistant Administrator for Research and Development, Science Advisor, EPA Dr. Sharon Hays, Chief of Staff, OSTP Dr. Raymond Orbach, Under Secretary for Science, DOE Edwin Piñero, Federal Environmental Executive, OFEE Dr. Willie E. May, Director of Chemical Science and Technology Laboratory, National Institute of Standards and Technology, DOC Phillip Swagel, Assistant Secretary for Economic Policy, Treasury